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SageCircle has received credible intelligence, subsequently confirmed, that EMA has initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

Official Statement from EMA

Received via email on Sunday, May 17, 2009:

For several years, EMA™ has achieved strong growth, averaging 30% annually. The company has been proactive in growing the analyst team in anticipation of future demand. This has added significantly to EMA’s technical depth and overall industry outreach (particularly in advising IT organizations). However, the current economic conditions have slowed the firm’s rate of growth. As a result, EMA has taken actions to align its resources with the demand anticipated for 2009. Management came to the difficult decision to reduce the analyst staff by two positions and internal support staff by one position. These minor adjustments will ensure EMA remains financially healthy and positioned for long term growth.